implementing the usage of biofuel in higher education facilities
TRANSCRIPT
Casey 1
Implementing the usage of Biofuel in Higher Education
Facilities
Emily Casey
Entrepreneurship Capstone
December 15, 2014
Casey 2
Executive Summary:
Colleges and universities across the United States prepare food for their students and
faculty by using cooking oil to fry the food. After the food has been prepared, this used cooking
oil is then taken and placed in a tank, where it will sit and wait for pickup. Thousands of schools
across the country dispose of their recycled cooking oil without considering the potential
opportunities of reusing their recycled cooking oil. This business venture calls for schools to stop
disposing of their recycled cooking oil, and instead, utilize it in an environmentally and
economically efficient manner.
Recycled cooking oil can be transformed into biofuel, a renewable source of energy that
will allow schools to reutilize the resources they already have available on their campuses. This
business plan focuses on how higher education facilities can utilize their recycled cooking oil as
a form of biofuel to heat their residential, academic, and facility buildings. Instead of using
heating oil to warm buildings, this business plan calls for the use of B-20; this term means that
twenty percent of a building will be heated with biofuel, while the remaining eighty percent of a
building will be heated with heating oil. By using B-20, schools will save twenty percent of their
heating oil costs, money that can be reinvested back into the schools. In addition to the cost
savings, higher education facilities will be able to reap the benefits first hand of using their own
recycled materials; typically, when someone recycles bottles or paper, another organization
produces recycled products that someone else uses.
Recycled cooking oil is readily available; it can be found in all types of schools,
hospitals, hotels, and restaurants, while the majority of the United States' heating oil comes from
foreign countries, making the United States extremely dependent upon others to provide us with
warmth. The price of recycled cooking oil remains pretty constant, while the price of heating oil
fluctuates greatly due to factors outside of the United States' control, such as the weather, politics
and economics in foreign countries, and international relations. Using recycled cooking as a form
of biofuel is also much more environmentally efficient than the use of heating oil; it can greatly
reduce the emissions of chemical compounds that can contribute to global warming and
negatively affect the health of citizens of the world. The use of recycled cooking oil as a form of
biofuel for higher education facilities to heat their buildings with is an environmental and cost
efficient means of utilizing readily available resources.
Casey 3
Overview of Business Model:
The business proposition is to develop an initiative for college and university campuses
to take their cafeterias' cooking oil, sometimes referred to as yellow grease, and transform it into
biofuel (also known as biodiesel or bioheat) to heat on campus buildings and facilities. Biofuel
is a term used to describe the process of converting a biomass, typically cooking oils, vegetables
oils, or animal oils, into a renewable source of energy, which can then be used to fuel a car, or to
heat a building.1 It is created through a complex process called transesterifcation, which can be
simply described as the process of reacting oils with alcohol combined with a catalyst, and the
end result is the production of biofuel and glycerin, which is a thick liquid commonly found in
soaps.2 Higher education facilities were specifically chosen as the target market because of the
vast amount of fried foods cooked at these establishments. The goal of this venture is to create a
sustainable model in which colleges and universities can utilize their recycled cooking oil by
turning it into biofuel to heat buildings and facilities across their campuses and to effectively
save money and reinvest it back into their schools.
Value Proposition:
The main value proposition is that this business model will allow colleges and universities the
opportunity to develop a renewable energy resource in biofuel that can be used as a source of
heat on campuses and to effectively save these respective schools money in terms of the cost of
heating oil. Biofuel is considered to be an alternative form of fuel because of how energy
efficient it is, and it can also be utilized as a form of diesel for cars. It can lower greenhouse gas
emission by 57%, and when compared to petroleum diesel, it lowers greenhouse gases by
86%.3According to the U.S. Department of Energy, the production and use of biofuel
significantly lowers carbon dioxide rates, at about 78.7%, in comparison to petroleum diesel.4
The most valuable component of this biofuel initiative is its ability to help maintain the
environment while simultaneously providing schools with the ability to heat their buildings at a
lower cost.
1 (Biofuel Basics, 2014.)2 (Biodiesel Basics, 2014.) 3 ibid4 (Kaleb, 2010.)
Casey 4
Market Analysis:
As previously mentioned, the main target market of this initiative is higher education
facilities because of their dependence on fried food to feed their students and staff. For example,
Williams College in Williamstown, Massachusetts has approximately two thousand students and
purchases over fourteen thousand pounds of cooking oil on an annual basis.5 Williams College is
an extremely small school, yet they purchase a significant amount of cooking oil, proving that
colleges of all sizes spend a significant amount of money on fried food, but this business
proposal will allow schools to regain some of their money that was used to purchase cooking oil.
The larger the school, the more money would be spent on purchasing cooking oil, and more
money would have to be spent to heat buildings as well.
There are several environmental and economical advantages that suggest using biofuel as
a form of heating oil would be beneficial to society as a whole. One of the main advantages is
that the usage of biofuel has the potential to develop the American economy and provide a sense
of security to the American energy system. By producing and using biofuel, citizens are more
dependent upon American manufacturers, as opposed to depending upon foreign nations for the
supply of oil. It has also the potential to improve the economy because it will provide more
Americans with environmentally friendly jobs, and it is creating "potentially valuable outlets for
agricultural products."6 According to Bioheat, an organization that utilizes biofuel to heat private
citizens' homes, the production of biofuel has revitalized the economy. An economic study done
in 2011 states that approximately thirty-one thousand jobs were created in the United States due
to the production of biofuel, and the growth rate of jobs was projected to reach about sixty-five
thousand in 2014, and then climb to seventy-five thousand in the year 2015. This study also
states that an income of about $1.7 billion through the economy was expected in 2011, and that
the production of biofuel would result in "an estimated $345 million in federal tax revenue and
$283 million in state and local tax."7 The production of biofuel has helped transform the
economy, and it has the potential to dramatically revolutionize it even more.
5 ibid6 (The Massachusetts Bioheat Fuel Pilot Program, 2007.)7 (Bioheat Advantages, 2014.)
Casey 5
Another environmental advantage of the utilization of biofuel is that the combustion
process of biofuel will release minimal carbon-dioxide.8 According to the United States
Environmental Protection Agency, greenhouse gases have been released into the environment at
an extremely high rate since the start of the Industrial Revolution, and they pose a threat to the
world. The burning of fossil fuels such as natural gas, coal, and most notably in this case, oil, are
the main activities humans participate in that have caused this increase in carbon dioxide
emissions.9 The utilization of another form of heating oil has the potential to cut back on the
amount of greenhouse gases emitted into the atmosphere. The last environmental advantage of
using biofuel is the fact that the burning of biofuel is considered to be much more "cleaner" than
the burning of other fuels. There have been numerous studies completed in labs that prove that
the burning of biofuel results in, "reduced nitrogen oxide, sulfur oxide, carbon dioxide, and
particulate emissions."10 Nitrogen oxide, sulfur oxide, and particulate emissions are all
considered to be pollutants that have the ability to cause respiratory problems.11 The use of
biofuel as an alternative for heating oil has the potential to transform both of the United States'
economic and environmental landscapes.
Competitive Analysis:
In term of competition, the main competitor in terms of using biofuel as a source of heat
would be regular heating oil companies; therefore, biofuel would be viewed as a substitute for
heating oil. The use of heating oil will not be completely stopped; instead, a fuel called B-20
will be used to heat the buildings on college campuses; this blend is composed of 20% biofuel
and the remaining 80% is heating oil. Therefore, it is best to say that 20% of heating oil is being
substituting in favor of biofuel. Recycled cooking oil can cost in price anywhere from $0.30 to
$0.40 per pound12, and it has a market rate of anywhere between $2.50 per gallon to $3.50 per
gallon13. The total production costs of recycled cooking oil can range anywhere from around $1
to $2 per gallon. Recycled cooking oil is readily available in the United States, with an
approximate amount of two billion gallons accessible in the year 2008, but only one million
8 (The Massachusetts Bioheat Fuel Pilot Program, 2007.)9 (Carbon Dioxide Emission, 2014.)10 (The Massachusetts Bioheat Fuel Pilot Program, 2007.)11 (What are the Six Common Air Pollutants?, 2012.)12 (Grabar, 2013.)13 (D'Urso, 2011.)
Casey 6
gallons were actually utilized for the production of biofuel.14 While the main component to
produce biofuel is cost-efficient and readily available, its main competitor, heating oil, is
definitely not.
In the Commonwealth of Massachusetts, the average price of retail heating oil during the
2013-2014 heating season (the months of October through March) was $3.96 per gallon; ranging
anywhere from $3.76 per gallon to $4.17 per gallon. Compared to the average cost of $3.00 per
gallon of recycled cooking oil, the price of retail heating oil during last year's season was $0.96
more expensive per gallon. The retail heating price per gallon has increased significantly over
the past five years, starting in the 2008-2009 season of $2.56 per gallon, and increasing each year
until last year's season, where there was a $0.01 drop from the 2012-2013 season's price of $3.97
per gallon.15 In Massachusetts, the wholesale price per gallon of heating oil during the 2013-
2014 season averaged out to be $3.27 per gallon, with prices ranging from $3.09 per gallon in
November to $3.50 per gallon in both February and March. The average wholesale cost of
heating oil per gallon in comparison to the average cost of recycled cooking oil was $0.27 more
expensive.16 These heating oil statistics from the Massachusetts Government website and the
U.S. Department of Energy show that the price per gallon of heating oil is incredibly expensive
in comparison to the price of recycled cooking oil per gallon.
Heating oil prices are subject to much fluctuation due to a variety of factors, including the
variations in demand due to the constant changing of seasons. For example, the price of heating
oil typically becomes much more expensive during the colder months because of the increase in
demand. Quick changes in temperature can cause the demand for heating oil to increase at such
a fast rate that wholesalers, refiners, and other parties directly involved in the heating oil
business cannot meet the demands of their customers, and the heating oil is used up quicker than
it can be refilled. The demand for heating oil is also heavily influenced by the weather in all
geographic locations across the world and each country's respective economy. Also, the supply
of heating oil is often dependent upon an assortment of components, most notably, the price of
crude oil, which is an element of heating oil, and the policies determined by countries that belong
to the Organization Petroleum Exporting Countries (OPEC). 17 According to a study done 14 (Bevill, 2008.)15 (Heating Oil Price Survey for October 14, 2014, 2014.)16 (Weekly Massachusetts Heating Oil Wholesales/Resale Price, 2014.)17 (Factors Affecting Heating Oil Prices, 2014.)
Casey 7
through the Harvard Kennedy School of Government, the demand for barrels of oil is expected to
jump from the 2007 rate of 85.8 million barrels per day to 106 million barrels per day in the year
2030, and the vast majority of this fuel will come from OPEC countries.18 Heating oil is affected
by a vast number of aspects, and the prices can heavily fluctuate due to any of these given
reasons, at any time. Using biofuel as a source of heat is a more economical and cost efficient
manner for higher education facilities to heat their buildings because of its low cost, and it is
readily available on school campuses.
Biofuel is considered a cleaner a form of energy than heating oil because it results in less
soot, and less soot in the heating equipment means that the equipment can operate more
smoothly while using less heating oil. The use of biofuel also results in lower the maintenance
costs for a furnace because the lubricity of biofuel is much greater than heating oil. The higher
lubricity of biofuel means that heating equipment can last longer because it decreases the natural
deterioration of the furnace and less money is spent to sustain and repair the furnace.19 B20, the
blend that will be used to heat Clark University's buildings, is slightly less efficient than heating
oil because it produces about 1% less BTUs (British Thermal Units) per a volume than heating
oil.20 A BTU is the standard measurement of heat, and it is amount of energy that is necessary to
either cool or heat one pound of water by one degree Fahrenheit.
Biofuel is also considered to be better for both the health of the environment and citizens
of the world because it results in less unburned hydrocarbons, and these unburned hydrocarbons
contribute to the formation of smog in the atmosphere. In 1998, the United States Department of
Energy worked with the United States Department of Agriculture to complete a study on the
lifecycle of biofuel. They discovered that biofuel is safer than other forms of oil because the
emissions of biofuel result in lower levels of polycyclic aromatic hydrocarbons at seventy-five
percent less and eighty percent less levels of emission of nitrated polycyclic aromatic
hydrocarbons in comparison to the release of emissions from heating oil. These compounds have
been linked to the development of cancer.21 The use of biofuel in this venture will lessen the
negative impacts on both the health of humans and the environment that other forms of energy
have the potential to cause.18 (Devereaux, Charan and Lee, Henry, 2009.)19 (Winthrop Fuel Company, 2011.)20 (S, Guzman, 2014.)21 (Biodiesel Benefits, 2010.)
Casey 8
The number of companies and organizations that utilize different forms of biomass, such
as cooking oil or vegetable oil, for the production of biofuel to heat infrastructure or use it as a
form of diesel to power cars has grown expediently over the past few years, proven by the data
supplied by the Bioheat website. Even though there are a significant amount of businesses that
transform biomass into biofuel, they are not considered to be direct competitors in terms of this
initiative. It is believed that this proposal, utilizing recycled cooking oil from high education
facilities' cafeterias and transforming it into biofuel to heat campus buildings, is not a venture
that would cause direct competition between universities and biofuel production companies.
While both of these respective organizations would be looking for recycled cooking oil or
another form of a biomass to transform into biofuel, colleges and universities would already be
in possession of their recycled cooking oil, unlike businesses that would have to go out and
advertise their services. It is believed that other biofuel organizations and colleges would be
indirect competitors in the sense that their end goal is the same, but these respective
organizations have different objectives because they would not being going after the same
cliental.
In term of the threat of substitutes, waste vegetable oil is a definite possibility that can
also be used to power cars, and most importantly in this case, heat buildings. While biofuel is
chemically produced and based, waste vegetable oil is much easier to produce because it is
basically collected, and then the particles are taken out of the waste. It is also more affordable
and safer than biofuel because it does not involve chemicals. However, implementing waste
vegetable oil is a complex process, and in most cases, biofuel can be readily available to heat a
building or to be used as fuel for a car, while the usage of waste vegetable oil in a car means that
a diesel engine must be modified.22 Also, waste vegetable oil has the potential to clog oil filters23,
and it is surprisingly much more toxic than biofuel because it contains a large of amount of
active fats known as Omega-6 polyunsaturated fatty acids, which if consumed by an individual,
can cause constant inflammation.24 While waste vegetable oil is a viable and legitimate source to
act as a form of heating oil and a form of fuel, the strong potential to clog oil filters due to build
up and its toxicity makes using waste vegetable oil a bigger risk than using biofuel.
22 (S, Guzman, 2014.)23 ibid24 (Gunnars, 2014)
Casey 9
Legal Regulations and Ramifications:
Environmental Legal Components:
There are several environmental legal components for the process of developing and
running a biofuel facility. One of the most important laws for biofuel companies that plan to
utilize their federal money to build a biofuel facility is the National Environmental Policy Act
(NEPA). This regulation calls for federal organizations to prepare detailed documents that show
how these organizations plan to run their biofuel plants in an environmentally friendly manner
and describe the effects these actions may have on the environment. These documents should
include an analysis of possible impacts humans and/or the environment may incur due to the
creation and development of a biofuel plant, and it should assess the impact on natural resources,
such as water, air, and wetlands. These documents also need to describe the possible impacts that
the development of biofuel plants may have on communities' systems of infrastructure, local
water systems, and what will happen to "used" biofuel products from these plants. The NEPA
also recognizes that biofuel products can have a negative effect on the environment due to the
emissions of "volatile organic compounds,"25 such as sulfur oxide and nitrogen oxide that can be
considered hazardous to the air, and there are specific, detailed regulations that control the
emissions of these organic compounds dependent upon the geographic selection of the biofuel
plant. The NEPA also focuses on the idea of reducing the negative impacts the emissions of a
biofuel plant may have on the air quality in a community by considering these residents.26 This
regulation is a broad overview of the basic environmental standards any organization needs to
consider in the developmental process of a biofuel facility.
Another very important environmental law that relates directly to the development of a
biofuel facility is the Clean Air Act. This legal regulation states all types of production facilities,
including biofuel plants, have an obligation to society to "prevent releases [of critical pollutants
such as carbon monoxide, sulfur dioxide, and nitrogen oxide] and to minimize the consequences
of accidental releases which do occur."27 There are two different types of standards that focus on
preventing pollutants from production facilities from damaging the quality of air that has the
25 (Environmental Laws Applicable to Construction and Operation of Biodiesel Production Facilities, 2008.)26 ibid27 ibid
Casey 10
potential to hurt both the environment and its citizens. The first standard is entitled the Primary
Standard, which determines the amount of pollutants that can be emitted by production facilities
in order to protect the general population, but to especially protect the segment of the population
that can be affected the worst by pollutants, such as senior citizens and very young children. The
standards are entitled the Secondary Standards which determines the limits of pollutants that can
be emitted by production facilities in order to preserve the public welfare, like infrastructure,
animals, visibility, and plant life. The EPA has developed ambient air quality principles for six
pollutants: particulate matter, sulfur dioxide, nitrogen oxide, carbon monoxide, lead, and ozone.
These policies relate directly to the development and production of a biofuel facility because
during the production phase and the chemical and oil extraction phases, pollutants and organic
compounds that evaporate at a quick rate are released into the environment, and they can be
considered hazardous to the respective communities they are located in.28 These regulations
focus more heavily on major production facilities of biofuel, while this business plan focuses on
a much more narrower market, but these regulations are extremely important to keep in mind and
abide by during the development and creation of a biofuel plant.
Another major component of the Clean Air Act is the requirement that all production
facilities, including biofuel, acquire a construction permit before the construction of the plant
begins in order to simultaneously protect the environment and the general population. There are
two different types of construction permits. The first types are entitled the Major Construction
Permits that are designed to maintain safe air qualities in the respective communities where
biofuel plants operate, and there are specific criteria that would make a facility have to apply for
this type of permit. One of the most important and relative types of permits that falls under this
category is the Prevention of Significant Deterioration Permits that considers a facility to be a
major source of air pollutants if the facility will most likely emit more than one hundred tons per
year. The criteria of the Prevention of Significant Deterioration Permits is the emission of:
"carbon monoxide at hundred tons per year, nitrogen oxides at forty tones per year, sulfur
dioxide at forty tons per year, twenty-five tons of particulate matter per year, forty tones per year
of volatile organic compounds, and load at .60 tons per year ."29 The majority of biofuel
production facilities emit one hundred or more tons of these pollutants, which makes this permit
28 ibid29 ibid
Casey 11
relative to the construction of a biofuel plant. In order to monitor the amount of pollutants
emitted into the environment, technology that can monitor and analyze the quality of air will be
extremely valuable for large biofuel production facilities to ensure that their emissions of
pollutants are not at a dangerous level.30 In this business initiative, the biofuel plant will most
likely start off as being very small in terms of emitting pollutants because of its relative size, but
as the project grows and if the size of the college campus this venture is utilized on is much
bigger than Clark University's size, these permits are extremely important to keep in mind.
The second types of permits are called the Minor Construction Permits that are designed
to prevent the emission of the previously mentioned critical pollutants at unsafe levels that would
have the potential to hurt the environment, but more specifically the quality of air. These types of
permits focuses more heavily on smaller production facilities that most likely do not have the
potential to release dangerous pollutants at the levels that major production facilities do. In
many cases, a condition of these permits will actually limit the emission that can be released into
the air in order to protect the environment. These permits will also require the monitoring and
analyzing of air quality to ensure that these protocols are actually being followed. One of the
major protocols of the Minor Construction Permits is the New Source Performance Standards,
which has developed standards directly from technology that focuses on the regulation of the
quality of air. These standards focus on the previously mentioned statistical amount of emissions
that can be released into the atmosphere, the requirements of the equipment that will be utilized,
and the testing, monitoring, and reporting of the amount of pollutants emitted into the
atmosphere.31 These permits are much more relative to this initiative because they focus on
smaller biofuel production plants, such as a college that is in the beginning phases of utilizing
biofuel, that will not be a major player in the release of dangerous and harmful pollutants into the
atmosphere, but the release of these pollutants will need to be watched in order to maintain a safe
level of air quality.
Hazardous air pollutants are another important consideration for biofuel production
plants. The National Emission Standards for Hazardous Air Pollutants standardize the amount of
air pollutants that are emitted into the atmosphere through technology based principles known as
the maximum control technology (MACT).These principles are similar to that of the new source
30 ibid31 ibid
Casey 12
performance standards, in that they test, monitor, and report the emissions of hazardous wastes,
and they have specific emission limits. In terms of hazardous waste, the Resource Conservation
Act, section 3005 contains the provision that facilities, such as biofuel facilities, "that treat, store,
or dispose of hazardous waste"32 acquire an operating permit from either the Environmental
Protection Agency or the facility's respective state agency. Recycled cooking oil is considered a
hazardous waste33, and if a biofuel plant plans on using recycled cooking oil as the basis for its
fuel, it must receive one of these permits.
As previously mentioned, the production of biofuel can create hazardous wastes, which
are defined as solid wastes such as liquids or gases that have been abandoned and are considered
to be dangerous because they are toxic, flammable, corrosive, and/ or reactive. The production of
biofuel can result in hazardous wastes that can be extremely dangerous. For example, a filter is
often used in the production of biofuel, and after a given filter is used, it can contain moisture
from oil that has the potential to combust at any time. Biofuel facilities must ensure that
combustion does not occur by mixing the filter with an absorbent to prevent combustion.
Methanol is also used in the production of biofuel, and waste methanol has the potential to ignite
if not collected in a system that is enclosed off. Glycerin is a product of the production of
biofuel, and waste glycerin also has the potential to ignite and can be corrosive. It must be
further refined in order to prevent this from occurring. When a catalyst is used in the production
of biofuel, the waste of it has the potential to be corrosive, but it can be neutralized to make it not
considered a hazardous waste. Wastewater has the potential to be hazardous in the production of
biofuel dependent upon the ph level from the catalyst. It can also be flammable if there are
significant levels of methanol in it. The biggest threats of hazardous waste in a biofuel facility
are waste methanol and waste glycerin. In most cases, there are no specific requirements for
biofuel facilities that produce hazardous wastes, unless the facilities plan on keeping, treating, or
getting rid of hazardous wastes.34 In this business plan for the use of biofuel as a source of
heating in college buildings, the hazardous wastes will not be kept or treated, but another
organization, the Worcester Biofuel Cooperative, will be responsible for the disposal of
hazardous wastes.
32 ibid33 ibid34 ibid
Casey 13
Any facility that generates hazardous wastes must inform the Environmental Protection
Agency and acquire an identification number if the facility produces more than 100 kilograms in
any month.35 Due to the fact that this business proposal is a relatively small endeavor, this issue
may not be faced within the first few years of getting this project off the ground. This business
proposal would be considered a conditional exempt small quantity generator because it would
most likely be producing less than 100 kilograms of hazardous waste. This would require the
main players of this initiative to "make a hazardous waste determination for each waste stream at
the point of generation."36 There would also be requirements to make sure that the waste is
disposed of in a proper manner. There are multiple ways in which hazardous wastes can be
disposed of, which includes underground storage tanks or disposal on land. It is believed that this
business plan would most likely lean towards the disposal of hazardous wastes on land because it
makes more sense from an economic standpoint than buying a tank. The EPA also states that the
specific managerial requirements of what to do with the disposal of hazardous wastes vary
significantly dependent upon how much hazardous waste is produced in a certain month. 37
The Clean Water Act is an important legal regulation for biofuel plants because of these
types of plants' heavy reliance on using water during the production process. Water is utilized
during the production of biofuel for cooling and to wash the products to eliminate any impurities
that may be present. When water is used for these types of activities, it creates wastewater
because it comes in contact with glycerin, methanol, different variations of oil, and lastly, the
finally product, biofuel. This act "establishes the basic structure for regulating discharges of
pollutants into the waters of the United States and regulating quality standards for surface
waters."38 One of the main components of the Clean Water Act is the Wastewater Discharge
Permits that determines the specific type of permit needed for the disposal of wastewater. There
are three different ways a biofuel plant could choose to dispose of their waste. The first way to
dispose of wastewater is by putting it into a body of water, which requires a permit from the
National Pollutant Discharge Elimination Systems (NPDES). The second way to get rid of waste
discharge is release it to a "municipal wastewater treatment system,"39 if applicable to the region
35 ibid36 ibid37 ibid38 (EPA, 2014.)39 (Environmental Laws Applicable to Construction and Operation of Biodiesel Production Facilities, 2008.)
Casey 14
the plant is located in. The last form of wastewater discharge is land application, which may or
may not require a permit from NPDES dependent upon the geographic location of the facility.40
Another valuable environmental legal implication that relates to the production of biofuel
is the Spill Prevention, Control, and Countermeasure that is designed to stop oil from being
discharged into passable waters and the shorelines that adjoin land to water. This measure has
several standards that make these regulations applicable to biofuel production. The first
regulation of these policies that has to be obeyed is if biofuel is being produced, but will not be
utilized for any form of transportation. This regulation is the most prevalent for this business idea
because the goal is to use the biofuel as a source of heat, not fuel, but that option can further be
developed down the line once this initiative has been in place for awhile. The second regulation's
focus is on how much oil will either be stored above ground or buried in the ground in a
container. If the oil is stored above the ground at a capacity of more than 1,320 gallons, or if the
oil is stored below the ground at a capacity greater than 42,000 gallons, it falls into this category.
The third regulation is if it logically possible that oil may be discharged into passable waters or
the adjoining shorelines. This measure contains detailed requirements about the potential for oil
spills, and what specific steps an organization should take if this does occur, in order to clean it
up. The measure goes into precise details dependent upon the geographic location of the plant
and the relative geographic location of any bodies of water that is near the location of the biofuel
plant. This regulation reasonably expects that all biofuel and other production facilities will try
their best to prevent any oil spills, and if they occur, they will be held accountable for it and will
determine the best manner to solve the oil spill problem.41
If a biofuel plant wants to sell their fuel, they must register with the Fuel and Fuel
Additive Registration System beforehand. The plant will be given a renewable identification
number that will represent the fuel that is being produced and sold.42 This business plan does not
necessarily account for schools selling their biofuel, but this is another potential step a school
could take in the future. In order to transfer biofuel, the plant must have a document that lists the
addresses of where the biofuel is coming from and where it is headed and the date of transfer. It
also must have the volume amount that is transferred, the date of transport, and the assigned
40 ibid41 ibid42 ibid
Casey 15
renewable identification numbers.43 Once again, these protocols are a bit out of this particular
business plan's initial scope, but they serve as a useful reference for future endeavors.
Biofuel Laws:
The American Society for Testing and Materials (ASTM) is an international organization
that creates and publicizes optional standards that have been agreed upon by a majority
representative that covers the technical standards for vastly different types of services, products
systems, and materials. ASTM D6751 is the name given to a group of tests to be performed on
biofuel that is to be utilized on a mass scale.44 The Alternative Fuels Data Center states that any
biofuel blends between 6% and 20% must meet these requirements45, meaning that they are not
optional for this initiative of using B-20. There are numerous specifications that encompass
these tests, but the focus will be primarily on the most important and relevant ones to this
initiative.
One of the most important tests for biofuel is known as method DM6584, also known as
the Free and Total Glycerin Test. If glycerin is not properly separated from the biofuel, it has the
potential to either separate or to come together and form as a solid, which can potentially clog
the pipes in a furnace. The amount of free glycerin determined by the ASTM that can cause these
issues to occur is a mass of over 0.020%. It is vital that biofuel producers take this figure and test
into consideration during the creation process to ensure that the fuel does not clog the pipes and
prevent the respective building from being heated. Another important test to consider, is one that
if not done properly can also result in the clogging of pipes, is the Potassium and Sodium by
Spectrum Analysis Test, also known as method EN14538. The potassium and sodium comes
mainly from the soap that is created during the production process that is not eradicated in the
correct manner.46
An additional test to consider during the production of biofuel is the Cloud and Pour
Point Test, known as method D2500. The cloud point is the lowest temperature that crystals will
start to develop in the fuel. The pour point is described as the temperature when the biofuel stops
flowing because of the fact that the temperature is so cold that the fuel freezes. There is no 43 ibid44 (Why ASTM is important and why the BioPro™ was designed around it, 2014.)45 (Biodisel Blends, 2013.)46( Why ASTM is important and why the BioPro™ was designed around it, 2014.)
Casey 16
specific temperature stated in these rules because the ASTM claims that the producers of biofuel
should already be aware of the temperature that causes the freezing of the fuel. There is a
general rule that states that biofuel will eventually freeze by thirty degrees Fahrenheit colder than
the temperature of the feedstock it was created from, so this fact should act as a guideline for
biofuel producers to abide by.47
Viscosity is a measurement that determines the resistance of any type of liquid to move
freely and there is a test entitled the Viscosity Test, known as method D445. The viscosity of
biofuel must be within a certain range between 1.9-6.0 cst, to guarantee that the biofuel will be
able to flow freely through the pipes. If the viscosity of the biofuel is greater than this range, it
can cause the fuel to start burning. The acidity of the biofuel is another important factor to take
into consideration, and the test that looks at this for biofuel is called the Total Acid Number Test
(TAN), known as method D664. This test allows biofuel producers to figure out how acidic a
portion of the biofuel is. The set limit for acidity in biofuel is 0.5 milligrams of potassium
hydroxide per gram. Biofuel can be over the limit of acidity because it was either simply left out
too long, or free fatty acids were created during the production process. Too acidic biofuel has
the potential to damage the fuel lines of a furnace. The Flashpoint Test, known as method D93, is
the lowest temperature in which the vapor of the biofuel can briefly catch on fire in the air. The
"flashpoint of the fuel relates directly to the ignitability of the fuel."48 A low flashpoint has the
ability to make the biofuel ignite to early, release too many emissions into the atmosphere, and
clog up oil pipes.49
These are some of the key specifications that are optional for biofuel producers to
consider when producing their fuel, but are not optional for this particular venture. This initiative
will definitely be taking these tests into serious consideration to ensure that the biofuel is of the
best quality and to mitigate the potential to clog the pipes of heating furnaces. These tests will be
vital to ensure the safety and working ability of the biofuel.
In terms of registration, a producer located in the United States must register with the
Environmental Protection Agency under the name of a fuel manufacturer if the biofuel will be
sold, especially on a large scale basis. One of the most important requirements of this registration
47 ibid48 ibid49 ibid
Casey 17
is that an outside party (of both the producers and the EPA) tests the biofuel to ensure that there
are no major negative health effects resulting from this fuel. This registration process also
necessitates the need for the producers of biofuel to give the EPA a lab analysis to ensure that the
biofuel follows the ASTM D6751 standards. If a registration is not completed with the EPA, no
organization will legally be allowed to sell their biofuel.50 Although this venture does not call for
the selling of biofuel, it is a viable and profit generating venture that universities and colleges
could seriously consider in addition to heating their buildings. There are other, optional boards to
register with, whether that be for commercial purposes, as an organization, or as an individual.
For example, biofuel businesses and individuals can join the National Biodiesel Board in order to
network with one another and share information.51 For the private use of biofuel on college
campuses, there are no formal requirements to register with any organizations or join any boards
because of the fact that their biofuel will not be sold anywhere, and the schools are already in
possession of it.
According to the director of the physical plant department at Clark University, the
regulations for biofuel are essentially the same as the regulations of regular diesel.52 When
biofuel is transported in a vehicle, there must be a warning sign regulated by the Federal
Department of Transportation placed on the vehicle. If the biofuel is pure biofuel, no warning
sign is necessary. If the flashpoint of the biofuel is less than 140 degrees Fahrenheit, the biofuel
is considered flammable, and a "hazard class three flammable place card"53 must be on the
vehicle transporting the biofuel. If the biofuel has a flashpoint between 140 degrees Fahrenheit
and two hundred degrees Fahrenheit, than the biofuel is deemed as a hazardous class three
combustible, and a combustible sticker on the transporting vehicle is necessary.54 When biofuel
is transported on a vehicle, there should be less than five hundred gallons being transported at a
time, and there must be two fire extinguishers that are approved by any autonomous testing
laboratory in the United States. 55 In terms of a permit for the transportation of biofuel, a permit
called the Common Carrier Permit is required if an organization is hiring someone to collect the
oil; however, if a member of the biofuel organization is transporting the oil, no permit is
50 (How to Join, 2014.)51 ibid52 (M, Leahy, 2014.)53 (Biodiesel Handling and Use, 2009.)54 ibid55 (Transport of Diesel, 2014.)
Casey 18
required.56 In this biofuel initiative, one of the most valuable team members, Scott, who
represents the Worcester Biofuel Cooperative, will be transporting the biofuel, so this permit will
be irrelevant because he is a member of the team.
Fire regulations dependent upon the region the biofuel is being produced in establish the
regulations in terms of signage on the storing of biofuel, but usually, all forms of biofuel,
including pure biofuel, must have a sticker from the National Fire Protection Association to state
whether or not the biofuel is flammable or combustible. In terms of fire safety considerations,
biofuel can be put out with water, carbon dioxide, halon, which is a compressed gas that can stop
fires that stem from chemicals, or a chemical foam fire extinguisher. It is also important to keep
in mind that biofuel will burn if it catches on fire, so it must be kept away from extreme heat and
any substance that has the ability to easily catch on fire.57 This is all of the available information
on biofuel regulations and standards.
In terms of certifications, there are no requirements that state that if an individual wants
to produce biofuel; he or she must have a piece of paper stating that they are eligible to produce
biofuel. In fact, anyone can make biofuel, although if an individual plans on selling the biofuel,
that is a whole another issue. As previously mentioned, the biofuel industry is a growing
industry, and some colleges and universities offer classes that focus on the production of biofuel,
and the end result of taking these classes is a certificate, but to reiterate, this is not a requirement
to produce biofuel . For example, the Extension School of San Diego University offers programs
for students to learn about the biofuel industry in terms of research, production, and how to
manage a biofuel organization58. Southeastern Illinois College also offers biofuel programs that
give students the opportunity to learn about the biofuel industry and the benefits of it mainly
from an environmental standpoint.59 These programs show the value of the biofuel industry and
how important it will be to both the economy and the environment.
There is constant debate in the scientific community across the world as to what
particular type of certifications should be put in place and who will test and monitor the biofuel
to ensure that the standards are being met. One of the biggest challenges facing the development
56 (Biodiesel Facility Permits Fact Sheet, 2014.)57 (Biodiesel Handling and Use, 2009.)58 (Biofuels Certificate Programs, 2014.)59 (Biofuels Certificates, 2014.)
Casey 19
of the certification of biofuel is the fact that the production of biofuel encompasses three
different sectors: the environmental sector, the agricultural sector, and energy sector, and these
sectors already have different regulations and certifications to take into account. Another issue
lies in the difficulty of determining the purpose of certifying biofuel; should biofuel be certified
in order to standardize biofuel products, or should certification be necessary in order to better
convey information to consumers, or should it be done in order to grow the biofuel industry?
Another question that has arisen is to whether or not to make these certifications optional or
required; as previously mentioned, there are standards for the production of biofuel that are, in
some cases, voluntary, so it may be difficult to develop certifications, when some standards are
still optional.60 These questions, combined with the fact that biofuel encompasses three different
sectors, makes it challenging for lawmakers to develop a certification that all biofuel players
would need to abide by. As previously mentioned in the market analysis section, the biofuel
industry is a growing industry that has the potential to significantly change the economy and the
environment for the better, but if this industry is to continue to grow at such a rapid pace and
biofuel becomes commonly used by both private and public parties, these certification questions
must be sorted out in order for the biofuel industry to continue to progress upwards.
In Massachusetts on July 28, 2008, Governor Deval Patrick signed the Clean Biofuels
Act in order to promote the expansion of the biofuel industry in Massachusetts as a member of
the "clean energy technology sector."61 This act requires that there is a percentage of biofuel in
diesel fuel and in home heating oil that is sold to consumers; Massachusetts was the first state in
the United States to require biofuel in home heating oil. In 2010 it was required that in diesel fuel
and home heating oil that are sold for consumption contained 2% biofuel, and then in 2013, the
requirement was bumped up to 5%. Also, all of the biofuel produced must lower the percentage
of greenhouse gases released into the atmosphere during the entire lifecycle by 50%.62
Massachusetts is the first state to prove a serious interest in utilizing biofuel in order to protect
the environment, and it makes sense for this initiative of colleges and universities using biofuel
to heat their buildings to occur in Massachusetts because of this state's stance on biofuel.
Operational Components:
60 (Devereaux, Charan and Lee, Henry, 2009.)61 (Clean Energy Biofuels Act, 2014.)62 ibid
Casey 20
Clark University, located in Worcester, Massachusetts will be the first school in the
spectrum of higher education facilities to utilize cooking oil as biofuel to heat on campus
buildings. This school was selected because of its relatively small student population of over
three thousand students, which makes this initiative more feasible to pursue in the beginning
stages, as opposed as schools with larger populations, such as the University of Massachusetts-
Amherst. This venture will be completed in small doses; the main focus will be on heating non-
residential building first with biofuel to remove any potential kinks and to not inconvenience
students during the colder months of the year if any problems arise. The eventual goal will be to
heat all buildings with biofuel, but that will take time to initiate. The recycled cooking oil will
be stored in a tank outside of the main dining hall on the loading dock. When this tank is filled to
the top, it will be taken to an offsite facility to be transformed into biofuel. This offsite facility is
called the Worcester Biofuel Cooperative, and it is located about three fourths of a mile off of
Clark's campus. The close proximity of the cooperative to the school campus is greatly
beneficial because it will keep the costs of travel back and forth from Clark to the Cooperative at
an affordable rate.
Both of these facilities require equipment, tools, and raw materials to produce the biofuel.
One of the most important pieces of this venture is the recycled cooking oil, which Clark will
store in its holding tank. A representative from the Worcester Biofuel Cooperative will come and
"suck up" the recycled cooking oil from the tank with a pump and transport it in a truck to their
location. At the Worcester Biofuel Cooperative, the recycled cooking oil will be transformed
from its original state to biofuel. As previously mentioned, the scientific process is called
transesterification, and the raw materials in this process include: recycled cooking oil, methanol,
and a catalyst, like sodium hydroxide. The cost of the raw materials is expected to be about $1.10
per gallon; this number was determined by an estimate from a member of the Worcester Biofuel
Cooperative.63 This number of $1.10 is then multiplied by thirty four gallons of biofuel that is
expected to be produced each month during the first year of existence to determine the monthly
raw materials cost at $37 per month and $449 for the first year of operation. The biofuel
processor, which is where the transformation will occur, costs approximately $6,000. This
number was determined by looking at the estimated cost that Williams College paid for their
63 (S, Guzman, 2013.)
Casey 21
biofuel processor, because they have a similar undergraduate population to Clark University, and
then scaling their price of $4,500 upwards because their estimation had been made in 2010. 64
As previously mentioned, the used cooking oil will be stored in a two hundred and fifty
gallon tank near the loading outside the cafeteria. This tank is projected to cost about $1,240,
based on the prices from a website called Northern Tool + Equipment that sells the necessary
tools and equipment to make biofuel. Another tank may need to be purchased at some point to
increase the amount of buildings being heated on campus. A biofuel pump will also be required
to in order to transfer the cooking oil to the biofuel facility, and this pump is projected to cost
about $700, also based off the website Northern Tool + Equipment. In order to produce the
biofuel, safety gear will also be required, such as protective gloves, aprons, goggles, and boots.65
There are currently three people who work in the Worcester Biofuel Cooperative, and the cost to
purchase of this safety equipment for three people is approximated to be around one hundred
dollars; this number was calculated based off of the prices of safety equipment at Home Depot.
A fuel pre- heater will also be necessary in order to prevent the biofuel from gelling. This gelling
can occur because of either lower temperatures or, most notably in the case of this biofuel
venture, be heavily saturated, which is extremely common in cooking oil.66 This fuel pre- heater
is estimated to cost about $500. A fuel filter will also be needed in order to filter and displace
water from the biofuel; according to Northern Tool + Equipment, this is expected to cost about
$65. The last necessity to produce biofuel will be biocides, which will conserve the life of the
biofuel because it will prevent microorganisms from growing in the biofuel.67 The cost of
biocides is estimated to be about $266 for twelve sixteen ounce bottles from a website called
Utah Biodiesel.68 These are all of the basic necessities to produce biofuel for this initiative.
The biofuel blend that will be used to heat Clark's buildings will be B-20. Biofuel blends
describe the percentage of the fuel that is composed of biofuel, and the percentage that is
composed of heatng oil. In Clark's case, 20% of the fuel will be composed of biofuel, while the
remaining 80% will be composed of heating oil. B-20 is considered to be the best form of fuel
because its emissions are low in toxicity, it does not clog pipes easily, and it burns in an
64 (Kalb, R, 2010.)65 (Biodiesel Buyer's Guide, 2014.)66 ibid67 ibid68 (Biodiesel Biocide Treatment, 2013.)
Casey 22
environmentally friendly manner.69 Pure biofuel cannot be used to heat buildings because of the
fact that the heating furnaces at Clark University are extremely old, and if pure biofuel was
placed into these machines, it would cause all the material that is built up against the walls of the
pipes to loosen up and clog up the pipes, which would result in the buildings not being heated
properly. Although heating oil is still being used in some capacity, 20% less is being used in
favor of an environmental and economical source of fuel.
The managerial structure of this process will start small and expand outwards and
welcome more players as the project gets off the ground and grows. One of the main managerial
components of this initiative will be a project manager, an unpaid student who is acting as an
intern, who is in charge of coordinating activities between the Worcester Biofuel Cooperative
and the heating department at Clark. The project manager will act as a liaison between these two
parties and will inform the Worcester Biofuel Cooperative when the holding tank is filled with
used cooking oil and schedule a pick-up. The project manager will also communicate with the
people who work in the heating department at Clark to determine when heating oil needs to be
delivered and what the volume is. This information will be relayed over to the Worcester Biofuel
Cooperative, who will make the biofuel and deliver it to the locations being heated by it. There
are currently three engineers at the Worcester Biofuel Cooperative will also play an important
role in this process; as they will be the ones responsible for collecting, producing, and delivering
the biofuel. There is a team of people, who work in the heating department at Clark, but one
person will play a major in the beginning stages. This person will play an integral role in sharing
the information about the contents of the heating oil available. Lastly, a project supervisor to
ensure the entire process is occurring smoothly is needed to handle any concerns and give out
directions as to what needs to be done. He or she will also be responsible for ensuring that all
legal regulations are met, along with being responsible for the financial components of this
venture. As this project moves forwards, and more buildings start being heated by biofuel, more
players will be added to the imitative. More project managers may come on board and may be
responsible for a specific component of the venture, such as certain buildings on campus or
connecting with specific people. As the project grows and matures, the necessity to bring more
people on board may grow as well.
69 (Red Birch Energy, 2014.)
Casey 23
Promotion:
The promotional activities of this initiative to encourage other colleges and universities to
use recycled cooking oil as a form of heating oil will encompass a wide variety of strategies. The
transformation of recycled cooking oil into a renewable source of energy has grown significantly
in popularity and in usage in the past decade. There are numerous companies and higher
education facilities across the United States that capitalize on the ability to turn used cooking oil
into a renewable source of energy, but the vast majority of research completed had led me to
discover that most recycled cooking oil that is transformed in biofuel is used as a source of gas to
power automobiles, not utilized as a means of heating buildings. There are many schools across
the country such as Williams College and Bridgewater State University that have programs that
utilize their used cooking oil as a form of petroleum diesel. The initial promotional activities will
be focusing on smaller schools, preferably in the New England region, to look at the
environmental and financial benefits that using their recycled cooking oil can bring as a means of
heating.
In order to network with other schools to promote this venture, a blog will be developed
to document the experiences and showcase the research completed on this topic. It will also have
contact information present on the blog and a brief description of the presentation given to
schools about implementing biofuel as a source of heat. It is believed that this manner of
presenting material will allow for information to flow freely and to encourage other schools to
seriously consider this venture. Almost all of the information found for this venture occurred
through the internet because of the limited availability of this information elsewhere. As
previously mentioned, there are a growing number of schools that have used biofuel in some
capacity, and the biofuel industry as a whole is growing significantly. The goal of this blog will
not only be to present information about the research conducted and the findings, but to serve as
a platform for schools who are interested in renewable energy and are conducting research on the
usage of biofuel.
Another valuable promotional activity will be to provide potential participants with the
opportunity to come to Clark and take a tour of this school's facilities, and then a tour of the
Worcester Biofuel Cooperative, to witness firsthand the process of how the recycled cooking oil
is transformed into biofuel. It is thought that this experience will make this initiative seem much
Casey 24
more realistic when viewed first hand. The potential participants will be able to see how the used
cooking oil is stored, what buildings are currently being heat with biofuel, and they will get the
opportunity to see the production of biofuel at the Worcester Biofuel Cooperative. There will
also be an open forum where participants will be able to ask questions and hear from the people
working on this project. The goal of this promotional activity is to provide potential participants
with a visual experience to develop a better understanding of the initiative.
One of the most effective methods to encourage the participation of higher education
facilities in this venture will be the presentation of the available financial information, such a
cost-benefits analysis and a return on investment scenario. Providing potential participants in this
initiative with financial information from an institution that is already involved in this venture
will allow schools to see the possible economic gains that can be made by using a renewable
source of energy. Schools will be able to see the potential capital that can be reinvested into other
departments of the school through money saved on heating expenses. There will also be an
explanation as to how the biofuel industry is a rapidly growing field that is providing the United
States with more jobs, and it is reducing the dependence on foreign countries for the supply of
heating oil. It will also be extremely beneficial for schools to have a firsthand account of a
school that has already implemented this idea. The financial information by far will be the most
valuable form of promotion because it will provide concrete evidence that this initiative is not
only feasible, but economically beneficial for higher education facilities.
Another effective method to promote the use of biofuel as a renewable source of heat will
be the presentation of environmental information and the environmental benefits that can occur
due to the implementation of biofuel as a source of heat. Society in general has become much
more environmentally aware in the past few decades, and colleges and universities especially
contribute to the growing knowledge about the environment. Two of the most important facts to
explain to potential colleges and universities to encourage participation in this venture will be the
reduction in greenhouses gases and the reduced amount of carbon- dioxide in the atmosphere. As
previously mentioned, greenhouses gases can be extremely harmful to the atmosphere, and the
emission of carbon-dioxide can cause serious health concerns among humans. By bringing up
these points specifically in the presentation will make a lasting impression on the audience
because we as a society only have one planet and one opportunity to take care of it. Higher
Casey 25
education facilities are often viewed as innovative institutions that promote new ways of
thinking, and it is thought that this initiative is an innovative means of acting in an
environmentally sustainable manner.
Social media will also be an effective method of promoting this business venture.
There will be a dedicated Facebook page to describe in great detail the process of making
biofuel, and it will include pictures of the process, as well as contact information. A Twitter page
will promote the benefits of utilizing biofuel from both an environmental and financial
standpoint in short, concise sentences to draw in interest about this initiative, along with contact
information displayed at the top of the page. An instragram page will also be utilized to provide a
visual sense of what is being done and to show the steps involved in taking recycled cooking oil
and transforming it into renewable energy. These social media accounts will primarily serve as a
method of promoting this venture to students and faculty at other colleges and universities who
are interested in developing a sustainable initiative on campus. The objective is to get more
people involved in higher education to think about ways to use their on campus resources in a
renewable manner.
Financial Analysis/ Justification:
It is assumed that the cost of heating oil is $3.60 per gallon, and that the cost of biofuel is
$1.80 per gallon, which is a savings of $1.80 per gallon. After consuming sixty nine gallons of
biofuel per month at 138 Woodland, a remaining balance of 9,084 in gallons would allow Clark
to heat other buildings on campus. Under current market condition (the difference between the
biofuel and the heating oil per gallon) savings of $1.80 extended by the gallons remaining would
result in a benefit of $16,351 per month (see cost benefits analysis). This would extend to an
annual savings of $196,962 in year one. This financial benefit assumes a breakeven amount of
total gallons produced of 9,153 in year one. It is pretty unrealistic to assume that a school of
about 3,000 students could produce 9,153 gallons of recycled cooking oil per month, especially
considering the fact that Clark University goes through about two hundred and fifty gallons of
used cooking oil every two months. However, one two hundred and fifty gallon tank filled with
recycled cooking can produce about two hundred and forty to two hundred and forty five gallons
Casey 26
worth of biofuel, which can be used for other buildings, and the biofuel can still be processed
even when it is not the heating season. See Cost- Benefit Analysis for further explanation.
As previously mentioned, 138 Woodland consumes about three hundred and forty three
gallons of heating oil per month at a cost of $3.60 per gallon; however, by using the B-20 blend,
this building is now consuming twenty percent less heating oil. The building now consumes two
hundred and seventy five gallons of heating oil per month and sixty nine gallons of biofuel per
month. By using twenty percent less heating oil, this building is able to save $245 a month on
heating oil costs. This adds up to a yearly savings of $1,469. See Cost- Benefit Analysis for
further explanation.
Conclusion:
This business model allows potential participants to develop an understanding that the
use of recycled cooking oil as form of biofuel to heat the buildings of colleges and universities is
an excellent use of campus resources that are readily available. It allows colleges and universities
to not only be economically efficient in terms of saving twenty percent of heating oil costs, but it
also allows them the opportunity to be environmentally efficient by producing less emissions that
can contribute to Global Warming. The use of biofuel also lessens the dependence of the United
States upon foreign countries for heating oil, and the growing biofuel industry is contributing to
the improvement of the American economy by creating more environmentally friendly jobs.
Biofuel is a financially beneficial and environmental efficient manner of utilizing resources
already available.
There are other potential opportunities that colleges and universities could look into in
terms of transforming their recycled cooking oil into biofuel. For example, they could sell a
portion of their biofuel to corporations and private consumers for their consumption, and
colleges and universities could also look into utilizing their biofuel to fuel their own vehicles,
such as campus police vehicles and maintenance vehicles. The transesterifcation process
produces glycerin in addition to biofuel, and schools could study the potential to use their
glycerin to produce soap to sell to their students and faculty. There are vast opportunities that
colleges and universities could look into in terms of what to do with their used cooking oil that
Casey 27
can benefit these higher education facilities both in the short run and in the long run. By
utilizing recycled cooking oil as a form of biofuel to heat colleges and universities, these schools
are recycling their resources and reinvesting these resources directly back into their schools and
reaping the benefits first hand. It is hoped that other higher education facilities will grasp the
benefits of using their recycled cooking oil as a source of biofuel and heat their campus buildings
with it and look into the other opportunities of utilizing biofuel. There is only one planet earth,
and it is the responsibility for all the citizens of the world to take care of it for us and for future
generations.
Appendix:
SWOT Analysis: Implementing the use of Biofuel as a Source of Heat in Higher
Education Facilities
Strengths
o Recycled cooking oil is readily
available and the price remains stable
throughout the year
o Save 20% of heating oil costs
reinvest money saved back into schools
o Reduces emissions of some of the
chemical compounds that contribute to
global warming
o Lessens dependence upon foreign
countries for fossil fuels
o Cleaner form of energy
Weaknesses
o Slightly less energy efficient than
heating oil
o Still heavily dependent upon heating
oil to implement business venture
o Schools would have to purchase
equipment and tools to develop this
venture
Opportunities Threats
Casey 28
o Use biofuel to fuel schools' police and
maintenance vehicles
o Use the byproduct of biofuel, glycerin,
to produce soap to sell to students and
facility
o Sell biofuel to private organizations and
consumers for own consumption
o Develop a similar venture for
restaurants, hotels, and other places
where recycled cooking oil is used with
high frequency
o Waste vegetable oil could also be
implemented in schools as a renewable
source of energy
o Biofuel is a relatively new source of
renewable energy that may spark
hesitation in some schools to
implement this venture
Casey 29
1 The Production Process of Biofuel
70 (Bioheat Advantages, 2014.)
Casey 30
2 The Expected Impact of Biofuel's Influence on Employment; Starting in 2011
Table 1 the Requirements for B-2072
Requirements for Biodiesel B6-B20 ASTM D7467
71 ibid72 (ASTM Biodiesel Specifications, 2013.)
Casey 31
Property Test Method Limits Units
Acid number D664 0.3 max mg KOH/g
Viscosity at 40°C D445 1.9-4.1a mm2/s
Flash point D93 52b °C
Cloud point D2500 Report to customer
°C
Distillation temperature, 90% evaporated D86 343 °C
Ramsbottom carbon residue on 10% bottoms
D524 0.35 max % mass
Sulfur D5453 0.0015 max (S15)0.05 max (S500)
% mass
Cetane number D613 40 minc -
Ash content D482 0.01 % mass
Water and sediment D2709 0.050 max % mass
Copper corrosion 3 h at 50°C D130 No. 3 -
Biodiesel content D7371 6-20 % (V/V)
Oxidation stability EN15751 6 min Hours
Lubricity at 60°C D6079 520 maxd micron
One of the following must be met:
(1) Cetane index D976 40 min -
Casey 32
(2) Aromaticity D1319 35 max -
B6 to B20This table shows requirements for 6% biodiesel (B6) to 20% biodiesel (B20) as listed in ASTM D7467.
The full standard can be purchased from ASTM International.
Casey 33
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Casey 34
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